UK car production driven down by fall in domestic demand

The number of cars built in the UK last month fell by 4.6% compared with a year earlier, driven down by a sharp decline in domestic demand. Nearly 161,500 vehicles were made in UK factories in November, according to the Society of Motor Manufacturers and Traders (SMMT).But output for the domestic market fell by 28.1%, as a result of “Brexit uncertainty” and “confusion over diesel taxation”, the SMMT said.Production for export rose by 1.3%.What’s gone wrong in the UK car market?UK car production rises in OctoberThe SMMT figures showed that of the 161,490 cars produced last month, 24,276 were for the UK market, while 137,214 were shipped overseas.Exports reached their highest proportion of output so far this year at 85%.However, the SMMT said production for the home market “continued to falter” and fell for the fourth month in a row.Earlier this month, SMMT car registration figures showed that the number of cars sold in the UK fell for the eighth consecutive month in November, declining by 11.2%. SMMT chief executive Mike Hawes said: “Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output.” He added that it was good to see exports grow last month, but “this only reinforces how overseas demand remains the driving force for UK car manufacturing. “Clarity on the nature of our future overseas trading relationships, including details on transition arrangements with the EU, is vital for future growth and success.”The number of cars made so far this year is down 2% compared with the same period last year at 1.57 million.Production for the home market has fallen by 9%, while production of vehicles for export is flat.
Source: BBC